February 13, 2017 12:09:03 am
Based on a complaint from Andhra Bank, the Central Bureau of Investigation (CBI) has registered a cheating case against electrical equipment manufacturer Best and Crompton Engineering Projects Ltd. The CBI FIR alleges that the firm has cheated the bank to the tune of Rs 71 crore.
The FIR names the Chennai-based company and its five directors, including managing director Kakulamarri Srinivas Kalyan Rao and has slapped charges under IPC sections pertaining to criminal conspiracy, cheating and forgery, among others.
According to the FIR, Andhra Bank had extended working capital, bank guarantee and letters of credit worth Rs 60 crore to the company. Later, Central Bank of India, which was the leader of the consortium funding the company, decided to enhance these limits from Rs 310 crore to Rs 900 crore, the complaint has alleged.
Anticipating increased credit from the consortium of banks comprising Central Bank of India, Corporation Bank and Andhra Bank, the company undertook new projects but could not complete them on time, it has claimed.
During internal investigations, the banks found that the company indulged in fictitious sales which were merely book entries, and was maintaining 24 accounts with all the banks and indulging in high value deals on which consortium had no control. The company also indulged in diversion of funds, Andhra bank has alleged.
“A fraud involving an amount of Rs 71.46 crore came to light at our T Nagar branch, Chennai, perpetrated in the account of M/s Best and Crompton Engineering Projects Limited by its Promoters/Directors and some others in the Working Capital, Bank Guarantee and ILC facilities sanctioned by the bank,” the complaint, now part of the FIR, has alleged.
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